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File Number: 13-401 <br />·Loans borrowed by the Agency ; <br />·Payments required by the federal or state governments; <br />·Pension and unemployment payments for Agency employees ; <br />·Judgments, settlements or binding arbitration decisions; and <br />·Any legally binding and enforceable contract that does not violate the debt limit or <br />public policy. <br />The current ROPS, version 13-14B, is based on a new spreadsheet template issued by the <br />DOF in August 2013 and therefore presents some information differently than in the past . The <br />obligations listed on the ROPS for January through June 2014 are generally the same as <br />those in the previous ROPS, although the following obligations are either new or the subject of <br />ongoing disagreement between the Successor Agency and the DOF : <br />City-Agency Agreements <br />After the approval of each previous version of the San Leandro ROPS, the DOF exercised its <br />right to conduct a review of the list of Enforceable Obligations. Upon completion of those <br />reviews, the DOF informed the Successor Agency that it does not consider some items to be <br />enforceable because AB x 1 26 does not recognize agreements between a redevelopment <br />agency and the city that created it. This determination related to a loan from the City General <br />Fund to the Joint Redevelopment Project Area with a balance of $2.1million and four <br />Cooperative Agreements to fund $9.1 million in capital improvement projects. <br />In response to the DOF’s initial determination , the Successor Agency and Oversight Board <br />exercised a power granted in Health and Safety Code Section 34178 to re-authorize those <br />agreements in May 2012. Assembly Bill 1484, which went into effect on June 27, 2012, <br />revises that section of the code, limiting an Oversight Board’s ability to re -authorize <br />agreements. DOF’s continued objection suggests that it interprets AB 1484 to have a <br />retroactive effect on these actions . <br />After the denial of these agreements on the ROPS for January-June 2013, staff requested <br />and received a meet-and-confer appointment with DOF. After that meeting, however, DOF <br />has continued to deny the validity of these obligations. No other administrative remedies are <br />available to the Successor Agency at this point . A lawsuit to challenge the DOF’s <br />interpretation is pending. The obligations remain on the ROPS but DOF has prohibited the <br />Successor Agency from receiving any funding under them . <br />If it is unable to establish the validity of these City-Agency agreements through other means, <br />the Successor Agency may opt to take advantage of a clause in AB 1484 which would allow <br />repayment of loans made by cities to redevelopment agencies upon compliance with certain <br />requirements. That clause, however, would strictly limit the amount of the payments and <br />requires 20 percent of all payments to be dedicated to affordable housing , among other <br />restrictions. That clause would not provide a mechanism for restoring funding for the capital <br />projects funded through the Cooperative Agreements . <br />Alameda Housing Associates (BRIDGE) Loan Agreement <br />The DOF previously denied the validity of the remaining balance (approximately $7m) of a <br />$9.1m Redevelopment Agency loan to Alameda Housing Associates for the construction of the <br />Cornerstone project. The DOF, through the Low and Moderate Income Housing Fund (LMIHF) <br />Page 2 City of San Leandro Printed on 9/11/2013